Capsol Technologies Asa · OSL:CAPSL
Capsol Technologies Asa — Investor Presentation (May 2024)
43 slides from Capsol Technologies Asa's investor presentation, May 24, 2024
Slide 1: Company presentation
Source: Urban Design Company presentation May 24, 2024
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION NOR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA OR THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATED AND THE DISTRICT OF COLUMBIA) OR ANY OTHER JURISDICTION IN W
Slide 3: Today’s presenters
Today’s presenters Wendy Lam Ingar Bergh Chief Executive Officer Chief Financial Officer
Slide 4: Capsol Technologies at a glance
Capsol Technologies at a glance • Safe, cost efficient and commercially ready carbon capture technologies • Technology development initiated in 2003 with Oslo (HQ) more than EUR 50 million invested to date Germany • Partnered with globally leading industry companies Houston to bring down CCS costs a
Slide 5: Steel on the ground: three CapsolGo demonstration units
Steel on the ground: Capsol has three CapsolGo® carbon capture demonstration units across Europe Germany: Demonstration at EEW’s Germany: Demonstration with Sweden: Demonstration with energy-from-waste plant until end Q2 liquefaction at undisclosed energy liquefaction to start at SHI FW client’s 202
Slide 6: Early phase of booming CCS market
Early phase of booming CCS market Market opportunity Competitive offering Commercial traction International expansion Long-term goals Concluding remarks and Q&A
Slide 7: Carbon capture and storage (CCS)
Carbon capture and storage (CCS) A proven solution for curbing climate change Separating the CO2 from the flue gas Capture For hard-to-abate industries, CCS is the most viable solution to avoid emissions of CO2 to the atmosphere Remove For combined biomass/energy- from-waste, CCS can remove CO2 from
Slide 8: Introducing Capsol
: in | g j technologies il Al Carbon Capture | i CO2 removed ; ' i (aipesen co2 n i | t il == J a it ‘a = ; ‘ie eae F ae Introducing eapsol
Slide 9: CCS market estimated to grow by 6x towards 2030
CCS market estimated to grow by 6x towards 2030 – still early phase of a booming market CO2 captured per year to reach net zero Required capture capacity in 20501 8,000 Energy Industry Power Removal (BECCS & DAC) Million tons capture capacity installed 7,000 7.5 GTPA 6,000 5,000 7 GTPA 3,581 4,000 3
Slide 10: Market drivers making CCS increasingly attractive
Market drivers making CCS increasingly attractive Market drivers Commercial inflection point reached in target markets Illustrative CCS incentives are increasing globally1 Costs are decreasing as technologies and projects EUR per ton CO2 captured mature, and economies of scale are reached2 Transport
Slide 11: A portfolio of solutions optimized for customers’ needs
A portfolio of solutions optimized for customers’ needs CapsolGo® CapsolEoP® CapsolGT® Full-scale capture solution for gas Mobile demonstration unit with an Full-scale capture solution for industrial Description all-inclusive service package CO2-emitting industries turbines in open cycle application
Slide 12: Offering lower costs, reduced project risk and easier permitting
Offering lower costs, reduced project risk Market opportunity and easier permitting Competitive offering Commercial traction International expansion Long-term goals Concluding remarks and Q&A
Slide 13: Scalable, high-margin and low-risk licensing model
Scalable, high-margin and low-risk licensing model Low fixed cost ~100% margin Zero capex risk 40-60% pre-tax …on licensing Marketing power and additional Technology license includes process …profit margin targeted long-term ~50% margin on CapsolGo® engineering capacity through design package and ca
Slide 14: Illustrative revenue and profit potential towards 2030
Illustrative revenue and profit potential towards 2030 CCS capacity ~1,000 mtpa sanctioned Based on Rystad Energy’s path to net zero scenario 2023-2030 X License fee EUR 10-15/t (real-term) installed capacity Capsol’s new target validated by recent license agreements = Market size EUR 10-15 bn Techn
Slide 15: Highly effective and patented core process
Highly effective and patented core process Inherent heat Improved energy efficiency recovery reduces opex Standalone Simpler integration reduces capture unit capex and project risk Non-toxic “baking Superior HSE makes soda” solvent permitting easier 15
Slide 16: Strong and expanding patent portfolio
Strong and expanding patent portfolio Patent family 1: Patent family 2: Patent family 3: Patent family 4: Patent family 5: Patent family 6: Method and device Method for transport Method and device Method and device Plant and system for Method and plant for for transport of of natural gas from a for
Slide 17: Attractive value propositions for large de-carbonizing industries
Attractive value propositions for large de-carbonizing industries Biomass/Energy-from-waste Cement Gas turbines Clean power and new business Meeting new regulations and stay Decarbonize hard-to-abate gas power Market drivers opportunities in carbon removal competitive • Low energy consumption • Lowe
Slide 18: Energy efficiency enabling lower capture costs
Energy efficiency enabling lower capture costs Energy consumption1 (GJ/t) Opex distribution (actual project) Levelized carbon capture2 cost (EUR/t) -40% -72% 36-58 10% Maintenance 10% Labor 2,5 GJ thermal2 10% Solvent 25-31 70% Energy ~60/40% 0,7 GJ electrical only opex/capex split Traditional amine
Slide 19: Delivering performance beyond CCS industry standards
Delivering performance beyond CCS industry standards Ability to capture a Highly competitive Top-tier Purity that meets range of flue gases energy efficiency capture rate industry requirements CO2 concentration Energy use Capture rate CO2 purity 3-30% 0.7-1.5 GJ/mt1 90-95% +99% Proven technology wit
Slide 20: Partnering with CCS industry pioneers for global scaling
Partnering with CCS industry pioneers for global scaling Partnerships aimed at reducing carbon capture cost and capturing market shares Joint R&D efforts to Develop and deliver Collaboration to Preferred equipment Large-scale CO2 Preferred engineer and test standardised carbon explore the supplier t
Slide 21: Accelerating demand from large, decarbonizing emitters
Accelerating demand from large, decarbonizing emitters Market opportunity Competitive offering Commercial traction International expansion Long-term goals Concluding remarks and Q&A
Slide 22: Strong commercial traction in Europe
Strong commercial traction in Europe 19.5 Revenues NOK million 100% 0.9 Europe Q1 2023 Q1 2024 13.1 13% Mature pipeline1 Engineering studies Million tons CO2 2.6 87% CapsolGo® License agreements Q1 2023 Q1 2024 Europe North America Fully funded on current business plan 1. Mature pipeline defined as
Slide 23: EU funding, permit and offtake secured for flagship project
EU funding, permit and offtake secured for flagship project • 800,000 tons CO2 per year, one of Europe’s first large-scale negative emissions plants • Stockholm Exergi awarded EUR 180 million by EU, environmental permit received • Off-take agreement with Microsoft in May 2024 on the sale of 3.33 mil
Slide 24: Increased licencing revenue target
Increased licencing revenue target Large European utility Project capture capacity (tons) 800,000 550,000 120,000 • Signed: Q3 2022 • Signed: Q4 2023 • Signed: Q1 2024 Key milestones • Expected FID: Q4 2024 • Expected FID: 2026 • Expected FID: 2026/2027 At a discount to the target range as a Terms r
Slide 25: Commercial traction in two first waves of demand
Commercial traction in two first waves of demand Biomass/Energy-from-waste Cement Gas turbines Clean power and new business Meeting new regulations and stay Decarbonize hard-to-abate gas power Market drivers opportunities in carbon removal competitive • Low energy consumption • Lower energy consumpt
Slide 26: CapsolGo and engineering studies for cost coverage; license agreements key value driver
CapsolGo® and engineering studies for cost coverage License agreements key value driver Revenue from engineering and CapsolGo® Cement project: EUR ~10m pre-tax profit2 (Illustrative) (Illustrative) 100 90 ~400 cement Engineering studies projects required 80 the next ten years Pre-tax profit (mEUR) 7
Slide 27: Expanding footprint in the world’s leading CCS market
Expanding footprint in the world’s leading Market opportunity CCS market Competitive offering Commercial traction International expansion Long-term goals Concluding remarks and Q&A
Slide 28: North America the world’s most attractive CCS market
Subsidies and execution advantages makes North America the world’s most attractive CCS market Current CCS projects & pipeline # of projects (top 10 countries by total # projects) Leading subsidies US: The IRA from 2021 includes USD 12bn to be spent on CCS over five years. US 273 IRA3 45Q increased t
Slide 29: Strong growth in North American CCS projects
Strong growth in North American CCS projects Operational and planned capture capacity in the US Capacity by application in the US and Canada and Canada CO2 capture capacity (mtpa) and % of total CO2 capture capacity (mtpa) Direct Air Capture 4% Bioethanol Production 8% Gas processing 5.5x 13% Variou
Slide 30: US office established – gaining commercial traction
US office established – gaining commercial traction First US personnel recruited, Houston office established establishing industry advisory board Ongoing projects in sales Partners secured across the engineering; CCS value chain strong interest for CapsolGo® Expecting faster pace of US presence incr
Slide 31: Building a globally leading CCS technology provider
Building a globally leading CCS technology provider Market opportunity Competitive offering Commercial traction International expansion Long-term goals Concluding remarks and Q&A
Slide 32: 2030 goals for long-term value creation
2030 goals for long-term value creation Ambition 1 Make point source carbon capture accessible and viable for more emitters Becoming a leading global carbon Top three position in target segments: biomass, energy-from-waste, cement and 2 gas turbines capture technology company 3 Achieve 5-10% carbon
Slide 33: Milestones expected next 6-12 months
Milestones expected next 6-12 months De-risking the path towards long-term goals and revenue potential Bringing New CapsolGo® Engineering Stockholm New licensing Expanding CapsolGT® to deployments contract awards Exergi FID1 agreements partnerships market Completion of Generating high margin Growing
Slide 34: Summary
Summary © EEW 2023/Peter Gercke Early phase of accelerating CCS market Offering lower costs, reduced project risk and easier permitting Accelerating demand from large, de-carbonizing emitters Expanding footprint in the world’s leading CCS market Building a globally leading CCS technology provider Ca
Slide 35: Q&A
Q&A
Slide 36: Appendix
Appendix
Slide 37: Value chain overview
Value chain overview Carbon capture EPC1 Operations and Liquefaction & Transport Storage technology maintenance intermediate storage • Technology • Client selects • Client selects • Client selects • Clients selects • Client selects licensed out independent independent independent independent indepen
Slide 38: Revenue streams
Revenue streams Current revenue stream Revenue Outlook Margins Addressable market EUR 12.5 billion by EUR 10-15/ton installed CO2 capture 2030, 52 billion by 2040 5%-10% market 100% margin, highly scalable – Licensing capacity (one-time, index adjusted) share target (EUR12.5/ton – Based on main valu
Slide 39: Awarded Pre-FEED study by gas turbine supplier
Awarded Pre-FEED study by gas turbine supplier In line with Capsol’s target of a full-scale first-of-a-kind plant in 2026 • Global provider of gas turbines awarded pre-FEED study to develop a customised CapsolGT® plant for several of their gas turbine types in open cycle application • The project ai
Slide 40: Management
Management Cato Christiansen, Chief Technology Officer >20 years’ experience from the energy sector. Former Shell, SPT Group and the Norwegian Ministry of Petroleum and Energy Wendy Lam, Chief Executive Officer (CCS). PhD in Mechanical Engineering from NTNU. An extensive career as an executive at Ba
Slide 41: Board of Directors
Board of Directors Wayne G. Thomson, board member Extensive international career as a top executive within oil and Endre Ording Sund, Chair gas, former Chairman of Svante Inc. B.Sc. in Mechanical Engineering from University of Manitoba. >40 years experience with management and board positions in the
Slide 42: Ownership overview
Ownership overview Top 20 shareholders as of 23.05.2024 Rank Investor Holding Stake Type 1 REDERIAKTIESELSKAPET SKRIM 9,546,474 15.77% Ordinary 2 SEOTO AS 5,172,677 8.54% Ordinary 3 AQUILA HOLDINGS INVESTMENT AS 4,033,188 6.66% Ordinary 4 DNB BANK ASA 3,314,534 5.48% Nominee 5 MP PENSJON PK 2,886,80
Slide 43: Key risks and mitigating actions
Key risks and mitigating actions Key risk factors Mitigating actions • Licensing model highly scalable with limited resources • Partnering with big global players to greatly extend reach, capacity and capabilities Small player • A clear strategic roadmap for organic growth and opportunistic approach
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